2. Financial Highlights

Corporate Operating Budget

The FDIC segregates its corporate operating budget and expenses into two discrete components: ongoing operations and receivership funding. The receivership funding component represents expenses resulting from financial institution failures and is, therefore, largely driven by external forces, while the ongoing operations component accounts for all other operating expenses and tends to be more controllable and estimable. Corporate Operating expenses totaled $2.82 billion in 2011, including $1.55 billion in ongoing operations and $1.27 billion in receivership funding. This represented approximately 93 percent of the approved budget for ongoing operations and 58 percent of the approved budget for receivership funding for the year. (The numbers above in this paragraph will not agree with the DIF and FRF financial statements due to differences in how items are classified.)

The Board of Directors approved a 2012 Corporate Operating Budget of approximately $3.28 billion, consisting of $1.78 billion for ongoing operations and $1.50 billion for receivership funding. The level of 2012 ongoing operations budget is approximately $106 million (6.3 percent) higher than the 2011 ongoing operations budget, while the 2012 receivership funding budget is roughly $702 million (31.9 percent) lower than the 2011 receivership funding budget. Although savings in this area are being realized, the 2012 receivership funding budget allows for resources for contractor support as well as nonpermanent staffing for DRR, the Legal Division, and other organizations should workload in these areas require an immediate response.